All you should know about contingency fund
1.A contingency fund is meant to cover unforeseen expenses like job loss and medical emergencies.2.It helps avoid taking expensive loans or building credit card debt during a crisis.
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4.The Fund meant to be easily accessible is best kept in a savings account, money market fund, or a liquid fund, rather than in stocks or long-term investments.
5.A contingency fund is a reusable kitty and, if it has been used, then one must rebuild it as soon as possible.
Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
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This story originally appeared on: India Times - Author:Faqs of Insurances
